IMPACT OF AUDIT FUNCTION ON FINANCIAL REPORTING QUALITY OF LISTED MANUFACTURING FIRMS IN NIGERIA

ABSTRACT This study examined the moderating effect firm size on the relationship between board monitoring mechanism and audit quality of listed manufacturing firms in Nigeria over a period of ten years (2013-2022). board monitoring mechanism was proxied by managerial ownership, board composition, board size and audit committee, while audit quality as the dependent variable. The population consists of the thirty forty eight (48) listed manufacturing firms as at 31st December, 2022. A sample of thirty nine firms was used based on availability of data. Secondary source of data collection was used and the data were extracted from the annual reports and accounts of the firms. Multiple regression technique was used and Stata 13 was employed as the tool of data analysis. The findings revealed that managerial ownership, board composition, board size and audit committee have significant effects on audit quality of listed manufacturing firms in Nigeria. The study recommended amongst others that, manufacturing firms should continue to engage the services of the Big4 auditors for better audit quality. Also board composition should be increased to guarantee the effective contribution/ representative in order for better audit function without undue influence which may be detrimental to the quality of audit, however, audit committee must be a function of audit quality.